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Saturday, April 24, 2010

JAKARTA: PT Titan Kimia Nusantara Tbk targets to increase company's factory utility and its subsidiaries from 68% last year to 75% this year from a total production capacity of 450,000 metric tons. The production increase is targeted to be 337,500 metric tons.

Director of Titan Kimia David Hung Tsung Chao said the company recorded a production capacity utilization of plastic raw material polyethylene (PE) of 293,334 metric tons last year. Production increase, he said, made to minimize the number of company's production and is expected to increase their net income.

"Last year for the first time we've booked net profits after the acquisition from the old management, this year we expect to increase," David said after the annual general meeting of shareholders (AGM) yesterday.

However, he has not been able to peg the profit target this year because it depends on raw material prices and changing of market demand. The Company recorded net income of IDR350.81 billion last years, after booked a net loss of IDR562.31 billion in 2008.

He says the increase in raw material prices on 1stQ/2010 amounted to US$ 1,210 per metrik tons from the level of US$800 per metric ton during the same period last year making the company threatened to predict financial performance. However, he was optimistic that net income this year will be positive again like last year.

Director of Titan Kimia Bambang Budihardja added with the addition of production, the company hopes to increase the composition of the market share from 30% in 2009 to be higher this year.

David said that the local consumer absorb around 80% of the company production because domestic demand is still very large, and the rest is exported. The main export destination of Malaysia, while the rest were sent to China, Vietnam, and several other countries.

The company's AGM, continued David, decided not to distribute dividends because they still cover losses that occurred in the last few years after the transfer of shares of the company in 2006.

Titan Kimia Corporate Secretary Merciana Anggani said shareholders at the extraordinary General Meeting decided to appoint Ezani Bin Sheikh Mohamad as the new finance director.

Moreover, continued Merciana, the company also decided to expand its business lines the company as an importer and trader of plastic raw materials biaxially oriented polypropylene (BOPP). Additional type of business was done by changing the articles of association of the company. "We did not change the main business, there's just adding another business."

David said Titan Kimia subsidiary, PT Titan Petrokimia Nusantara who donate 90% of sales issuers, will budgeting capital expenditure of US$2.7 million this year. The company will use internal funds for the needs. Titan Petrokimia are currently in the bidding process of bond and sukuk I/2010 with total worth of IDR500 billion.